SOCAR and Gasprom to discuss Russian gas export to Azerbaijan

Today delegation of State Oil Company of Azerbaijan (SOCAR) will depart to Russia to attend the International Economic Forum in Saint Petersburg on June 16-18.

During the Forum SOCAR administration led by President Rovnag Abdullayev will meet with Aleksei Miller, chairman of Board of Russian gas company Gasprom.

SOCAR has several issues to discuss with Gasprom. In May 2016 SOCAR President Rovnag Abdullayev told journalists that Azerbaijan has submitted its proposals on Russian gas import to Gasprom. He added that the proposals include various volumes of import, which vary between 3 and 5 bcm.

Why does Azerbaijan need to import gas, if since 2007 the country exports gas? SOCAR’s President explained that more associated gas is pumped into the oil beds to prevent reduction of oil production. Both SOCAR and BP-Azerbaijan cannot do that, because part of associated gas is pumped to the coast for the needs of the local market. Abdullayev said if a big volume of gas is injected into the wells, oil production will go up and then profits of the companies and the state from oil will increase as well. One can pay for that with imported gas and another problem will be solved – natural gas is more efficient, than associated gas.—0—